Perth Lagging In Growth Since Covid

Prop Track released a report recently showing growth rates of the capital cities against regional growth rates since March 2020. Top performers were regional Queensland and regional South Australia at around 66% growth each. Adelaide and Brisbane were at roughly 64% and 63% respectively. Little old Perth was next in line at 57.3%, then regional WA at 55.5%.

Why is this important? Queensland and South Australia have both grown more than Western Australia in the same time period, but equally as importantly is that in the decade leading up to Covid, South Australia had grown 23.1% and Queensland had grown 20.6%, whereas Perth had only grown 1.8%.

We know that long term growth in property throughout Australia is around 7-8%, and Perth growth was lagging in the decade leading up to Covid, and it’s still lagging behind these top performing states since Covid.

What this means is that we can expect Perth to continue to grow as it catches up for lost growth in what is termed “regression to the mean”, meaning we haven’t grown in line with the long term average of 7-8% and therefore we’re going to catch up for lost growth. We still have a fair way to go as you can see from the comparison to South Australia and Queensland.